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  • methods
  • However, the FASB does not prescribe specific allocation methods but does provide some examples and illustrations in paragraphs 25 through 31 of FASB ASC 958-720-55. (mlrpc.com)
  • Accounting
  • Not-for-profit entities must allocate joint costs from combined educational campaigns and fundraising solicitations between program costs and fundraising costs if certain criteria are met, according to the Financial Accounting Standards Board. (mlrpc.com)
  • This allocation requirement is stipulated in FASB Accounting Standards Codification Topic 958, Not-for-Profit Entities , and more specifically in FASB ASC 958-720-45. (mlrpc.com)
  • These entities may find helpful an overview and refresher of joint costs and what is allowable under U.S. generally accepted accounting principles (U.S. GAAP). (mlrpc.com)
  • determine
  • These entities should weigh the cost-benefit to allocating joint costs, especially in primarily fundraising cases in which it might be very difficult to determine the appropriate allocation of these costs. (mlrpc.com)
  • FASB ASC 958-720-55-2 includes a flowchart that depicts a decision tree for helping to determine whether not-for-profit entities have joint activities and, if so, how joint costs should be allocated. (mlrpc.com)
  • direct
  • Costs of goods or services provided in exchange transactions that are part of joint activities, such as costs of direct donor benefits of a special event - a meal, for example - should not be reported as fundraising. (mlrpc.com)
  • significant
  • For not-for-profit entities that do not have significant joint activities, the additional costs of tracking and measuring joint activities may not be worth the level of effort. (mlrpc.com)